“Bricks and mortar” has, for decades, been a guiding principle for savvy investors looking to make a return. While property investments don’t always promise the kind of stellar returns that can be earned on riskier investments, they also don’t come with the downsides. And, over the long-term, all the evidence suggests that property is the best means by which to grow your money. In fact, while data recently published by Heathstone Investments1 reveals that, over the course of one year, returns on property investment are eclipsed by those in equities (7% and 12% respectively) – the story is a different one over the longer-term.

Over 10 years, investments in property and equities both return around 8%, while over 15 years, property investments return nearly 12%, while equities return less than 8%. So, while property investment doesn’t always contain the highs and lows of other investment, for those looking to make a stable and long-term return on their money, the data suggests it is the preferable option. With political uncertainty having rocked stock markets and equities in recent years, and with further potential turmoil on the horizon, the case for investing in bricks and mortar has never been stronger.

The question then becomes however, which property to invest in?

For many years, a staple choice for those looking at property investment has been the buy-to-let sector. There are an estimated 2 million buy-to-let investors in the UK, invested in a private rented sector which is home to more than 5 million people. The dynamics behind this market have traditionally been strong, and continue to be so as rising property prices mean younger people spend more time in privately rented homes, prior to one day getting on the ladder themselves. Housing affordability has become a political issue however and the government in recent years has attempted to discourage investment in buy-to-let by raising the level of stamp duty payable on second home and buy-to-let purchases, as well as reducing the amount of tax relief landlords can claim on profits earned through buy-to-let investment.

As a result, increasing numbers of property investors are now looking at the other end of the market – luxury property. There’s good reason for this growing interest. Recent data from Christies International Real Estate reveals a market currently at record levels with the world’s top ten reported property sales all priced above $100 million2 for the first time. And with property investment funds promising double digit returns on luxury investments3, combined with a dwindling number of dividend paying shares available4 to would be investors, it’s easy to see why this new investment class is growing in an era where interest rates and returns on savings around the world remain subdued.

Unlike traditional property investments however, luxury investments may often require more initial capital. While this can be seen as a positive in that greater investment will lead to greater returns, it can also be daunting for somebody new to the market. Furthermore, alongside the question of what to invest, there is also the question of where. With cities from Toronto to Hong Kong selling themselves as the next global property hotspot, this can be more complicated than it sounds.

The Luxury Property Show this October at the London Olympia is a perfect introduction to the exciting world of luxury property investment and a great opportunity to meet likeminded investors, and explore potential opportunities. The show, now in its 10th year, consistently attracts the movers and shakers from the luxury property world who can help guide an investor to making the right choice. Likewise, attending the show can save an investor countless hours and air-miles as they’ll be able to get detailed insights into potential properties ranging from mountain and lake retreats in Northern Europe to luxury loft apartments in New York, via beachfront homes in Dubai.

Alongside insights into luxury properties and property markets around the world, the show also gives potential investors unparalleled opportunities for networking with fellow investors and property consortiums as well as access to a full programme of seminars aimed at seasoned investors, as well as those who are new to the market.

Eddie Sikora, Director, the Luxury Property Show, said: “The luxury property market is growing exponentially at the moment with an unprecedented number of sales topping the $100 million mark. As the old adage goes however, early bird catches the worm, and now really is the time for those thinking about investing in this market to take the plunge.

“Whether you’re a seasoned investor or a complete novice, there are always questions to be considered and contacts to be made. Over the course of the last decade the show at the Olympia has become a central event in the luxury property calendar, and is where people go to develop a better understanding of this complex market and get key insights into the next property hotspot. It’s an opportunity for investors, developers and the real estate community to come together and discuss the key trends and, more importantly, to match those looking to invest with the right property for them.”

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The Luxury Property Show runs from 27th – 28th October at the London Olympia. For further information about the show and opportunities to either exhibit or visit, head to http://www.theluxurypropertyshow.com .

“May you live in interesting times”, so goes the supposed Chinese anti-proverb. The implication being that ‘interesting’ is the direct opposite of stable, harmonious and peaceful.

And indeed these are interesting times. Political upsets on both sides of the Atlantic have rocked stock markets and funds. Meanwhile disputes in the Middle East and the emergence of US shale have led to fluctuations in global energy prices, with knock on effects for domestic economies around the world. And with enquiries ongoing into possible ties between President Trump and the Russian state, and Brexit negotiations about to begin in earnest in Europe and the UK, the uncertainty shows no signs of abating. Elsewhere, tensions continue to rise in the Middle East as both the Saudis and Iran accuse each other of being the weak link in the fight against global terrorism.

Another often misattributed piece of Chinese wisdom however states that crisis and opportunity are but two sides of the same coin. So, where does the savvy investor look to grow their wealth in these interesting times?

One investment which brings long-term growth, regardless of political and economic fluctuations, is property, and luxury property in particular is becoming a key investment option for high-net worth individuals from across the world. Recent data from Christies International Real Estate reveals that the luxury property market is currently at record levels and, for the first time, the world’s top ten reported property sales were all priced above $100 million1. And with property investment funds promising double digit returns on luxury investments2, combined with a dwindling number of dividend paying shares available3 to would be investors, it’s easy to see why the market is booming in an era where interest rates and returns on savings around the world remain subdued.

The question for most investors is not therefore, should I invest in luxury property, but rather, where to begin? With everywhere from Toronto to Hong Kong pitching itself as the next luxury property hotspot, where can an investor learn about the market?

A good place to begin would be the Luxury Property Show this October at the Olympia Conference Centre, London. The show, now in its 10th year, consistently attracts the movers and shakers from the luxury property world who can help guide an investor to making the right choice. Likewise, attending the show can save an investor countless hours and air-miles as they’ll be able to get detailed insights into potential properties ranging from mountain and lake retreats in Northern Europe to luxury loft apartments in New York, via beachfront homes in Dubai.

Alongside insights into luxury properties and property markets around the world, the show also gives potential investors unparalleled opportunities for networking with fellow investors and property consortiums as well as access to a full programme of seminars aimed at seasoned investors, as well as those who are new to the market.

Eddie Sikora, Director, the Luxury Property Show, said: “The luxury property market has enjoyed significant growth in recent years as investors have used property as a hedge against global risk and uncertainty. Beyond this however, investing in luxury property is a statement, and a symbol of prestige and success, hence we have seen an unprecedented number of sales over the last year topping the $100 million mark.

“Nevertheless, it’s a complicated market. Investors need to consider not just all the usual things that come with purchasing a property, but also other key questions such as ‘where is the next property hotspot’ and ‘what geo-political dynamics could impact the investment over the medium and long-term’. With many investors now coming to see key western markets such as London and New York as being saturated, these questions are ever more important for potential investors.

“The Luxury Property Show presents an opportunity for investors, developers and the real estate community to come together to discuss the key trends and issues and, more importantly, to match those looking to invest with the right property for them.”

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The Luxury Property Show runs from 27th – 28th October at the London Olympia.

AN OUTSTANDING LOCATION, HIGH RETURNS AND APARTMENTS OF SUPERIOR QUALITY

A striking 29-floor development boasting impressive views of the world-famous Burj Khalifa Tower. This is Marquise Square. For investors, it’s the most exciting opportunity right now to secure the finest real estate in the heart of Dubai. The city’s highest yields. The city’s highest levels of capital growth. A development constructed by a renowned Emirati developer. Studio apartments in an area of high demand and low supply. Marquise Square is an investment underpinned by the strongest market fundamentals.

The word exponential is often used to describe the pace of technological change which has come to define the world we live in. And with new technologies such as artificial intelligence, 3D printing and virtual reality only just warming up, the pace is unlikely to let up. In this environment is it easy to become convinced that, when competing in a global marketplace, speed is the greatest of virtues. Indeed, in The Great Acceleration, author Robert Colvile argues that speed has become the defining feature of the modern economy, the driving force behind wealth creation in the 21st century.

The High Net Worth (HNW) marketing space is no exception and here also, the trend is towards speed, automation and algorithms. Netz.uk for example, based in London, use machine learning and natural language processing to target their HNW marketing. Even HNW financial advice is now being automated by companies looking to stay ahead of the technological curve and increase market share.

Rise of the robots?

The question for those working in the HNW space however is, when will clients hit saturation point and want more of a personal touch?

A recent survey from the CFA (Chartered Financial Analyst) Institute found that, contrary to prevailing trends, while 70% of respondents agreed that automation would bring benefits, a majority still preferred some degree of human interaction1.

Automated marketing can also sometimes find itself on the wrong side of the fine line between mass electronic communications and spam. While approaches based on machine learning and other emergent technologies can be useful in building initial relationships, the simple act of clearing cookies has the potential to reset the system – in effect undoing any relationship and sending a marketing campaign back to square one.

There are also policy dimensions to consider. Recently a whole host of organisations have pulled advertising from YouTube following the discovery that the marketing campaigns into which they have poured a great deal of time, energy and finance, are running alongside extremist videos which have been uploaded to the site2. To a large extent governments and policy makers are engaged in a constant game of catch up when it comes to new technologies. For a HNW marketing campaign that finds itself promoted alongside a video glorifying extremist causes however the damage is already done, irrespective of whatever the government policy might be towards managing these issues.

A diverse audience

Another problem posed by the one-size-fits-all approach to HNW marketing is that those who fall into the HNW and Ultra-HNW categories are an increasingly diverse and transnational demographic. There is now a broad spread of HNW individuals, spread both geographically, generationally and socially. Whether it’s industrial magnates from China, energy bosses from Russia or 20-something tech entrepreneurs from Silicon Valley, the days when HWN individuals could be easily categorised or understood as a homogeneous mass are long-gone.

The tastes and habits of this group are just as diverse and as a result patterns of luxury consumption are changing. The trend is away from mass produced items and towards individually created and bespoke products. Indeed, as Margaret Wolhunter of luxury brand strategists The Partners has argued: “Luxury can begin for the individual with a special interest which can become a passion – investing which can focus more on craftsmanship, limited editions and one-off items.”3

A personal approach

Is there a balance to be struck then between making the most of what new technologies allow when it comes to HNW marketing, while also remembering that those you are targeting are diverse and discerning individuals?

For example, SKS Media has built a business around a granular, one-by-one approach which treats each campaign and each client individually. The focus of each campaign always remains very simple: return on investment. While the trend in HNW marketing is often towards expensive events and brand awareness campaigns, the returns on these significant expenses can often be ephemeral. This is why an established agency remains focused on tangible returns which actually grow a client’s business. And while, in a sped-up and interconnected world, this might feel like swimming against the tide, there are growing numbers of people willing to question the narrative that tech is always best. Snapchats recent $29 billion IPO (despite the company having never made a profit) have led many to speculate that we are in the midst of a tech bubble akin to the dot-com bubble of the late 90’s.

John Winters, Director at SKS Media’s Singapore office, says: “Technology gives anybody working in the HNW marketing space a whole range of exciting tools with which to better develop and reach out to new audiences. The HNW market is increasingly diverse and increasingly global however and this makes it increasingly difficult to develop systems or approaches which can be applied to this audience as a whole.

“The key to HNW marketing is relationships and while working with new technologies needs to be part of the mix for anybody looking to make an impact, there is still a preference in this audience demographic for a more traditional approach focused on ROI, detailed bespoke campaigns and personal attention to relationships.

“Highly targeted campaigns, adapted for a range of mediums from broadcast, direct response, networking, events and digital, usually prove to be the most effective. So, when looking at tech trends and the possibilities they promise, the lesson for HNW marketers has to be, don’t not believe all the hype, but take it with a pinch of salt. Or is that silicon?!”

Over several decades, London has established itself firmly as a global city to rival any other. Reflecting this, London property has also become one of the go to places for investors from across the world. 2016 alone saw £4.6 billion worth of investment from Asia into the London property market according to Savills1, while Q3 2016 saw £685 million worth of investment from the US2.

Alongside investment in commercial property, interest in residential London property has also spiked across the globe. Fitzrovia, Belgravia, Mayfair – the names of these neighbourhoods are synonymous with elegance and class globally, and they are neighbourhoods where pockets are deep. Interest in being part of the luxury London brand has contributed to substantial growth in London property prices over the long-term, with the latest data showing 7.5% growth in the year to December 20173.

While this investment is great for the city, and is actively changing the face of London with destinations on what were once the peripheries such as Canary Wharf and the Greenwich Peninsula becoming ever more important, it also means the market has become increasingly competitive.

Whether investing in London to generate income, or simply to own and inhabit your own slice of the city, competing with investors in what has become a global market place can be challenging. As many of those new to the market have found, often a property has already sold by the time it appears in the estate agents window.

Surveying your investments

Once an investor has found the right property in the right location and at the right budget, a second challenge is to ensure the property is as good on the inside as it looks on the outside.

Arriving in London from certain directions could leave you with the impression that you’re entering a hypermodern city – full of glass towers and new build apartments. While this is true to an extent, what also makes London great are the countless historical buildings and neighbourhoods that give the city such character.

Buying these properties and in these neighbourhoods can deliver an investor a property full of style and historical features, but it also means detailed surveys will need to be undertaken. Historical buildings bring with them their own unique challenges. Listed buildings for example, may bring with them certain obligations to maintain the property to certain standards, or within certain parameters. Further to this, investors will need to consider any local planning restrictions or listings which may impact future plans for the property.

On the other side of the equation, investors should also remember that London is an incredibly dynamic and fluid city, with a skyline that is constantly growing. Investors need to consider the impact of potential future developments upon their property. Will the view of the river that can be enjoyed today, be a view of the back of another tower tomorrow?

While it’s hard to keep track, recent reports suggest in excess of 400 skyscrapers are currently being planned across London4. Investors need to find out how many, if any, of these will be being constructed in their neighbourhood and consider how comfortable they are with that.

Beating the competition?

So, how can investors beat the competition to find the right property, make the right offer and then ensure that the bricks and mortar they are investing in is built on solid foundations? Both foreign and domestic property investors are increasingly turning to buying agents to help them negotiate the challenges between them and their perfect investment.

Buying agents can save an investor time and money by ensuring they find the best deals and by bringing local, specialised expertise into the search and acquisition process.

Henry Sherwood, CEO of the Buying Agents says, “London is at present one of the world’s great property hotspots alongside other great global cities such as New York, Paris and Singapore. It is an exciting place for any investor, whether the individual looking to build a successful property rental business in one of the world’s most in-demand cities, or the family looking for a convenient home close to the offices of the Square Mile.

“The very things that make London such an attractive proposition for would-be investors however, also ensure that investing in the city can be a huge challenge. Not only do investors need to negotiate the fierce competition in the market, they also need to consider the neighbourhood they are investing in, the historical fabric of the city and the impact of future growth.

“It is imperative that investors also find the right professionals to manage their investment, the surveyors and lawyers, even the choice of removal firm needs to be considered carefully! This is where a buying agent can save an investor time, money and a great deal of stress. The detailed knowledge of, and love for, London’s property market which an agent can bring to the table is priceless and a must for anybody thinking of making a serious investment into the capital.”

The Buying Agents, based in London, is an award winning property search and acquisition company covering London, the UK and popular destinations in Europe. It provides a personal one to one service to home buyers and investors, active in the prime property market for nearly 15 years with a focus on London but also covering other exclusive parts of the UK, France and Monaco. With a wide range of properties available (which you won’t find in the estate agent windows), The Buying Agents offers a full, bespoke service, taking investors from initial searches, to managing the move, exchanging contracts and opening the door to London property.

Buying boats is a complex business, but with the right advice you won’t be left all at sea.

Purchasing your first yacht, or upgrading to your next one, is a significant investment decision. And while the perks of a yacht owning lifestyle are many, it is important to understand and deal with any challenges involved.

The first thing you’ll need to consider is finance. What is your budget? You need to set a budget that is realistic for both your aspirations and your pocket. Take into account buying costs and depreciation. Most people understand that once you have driven a new car off the forecourt, the vehicle becomes immediately second hand and loses value. The same principle applies to purchasing a new yacht. Although the depreciation won’t necessarily be as dramatic as with a new car, it is certainly a factor that needs to be considered.

With finance secured, then comes the second challenge – finding the yacht that works for you and your budget! The yacht market is a truly global one and you could find yourself working with buyers and sellers all over the world in what is often a fast moving environment.

Your search will also need to be informed by questions about how you intend to use your yacht. This will determine the specifics you need – everything from engine power, to space and size, to what finishes you would like to see in terms of upholstering and on-board facilities!

So, how to navigate these choppy waters and find the yacht that’s right for you?

Yacht sellers have for a long time employed agents to help them achieve the best possible price for the vendor. Increasingly, buyers are taking the same approach. You need a professional on your side. A well informed and well connected agent can save you time and uncertainty, as well as potentially saving you tens of thousands of pounds (or more) in up-front costs.

At Go Earth we support your aspirations to yacht ownership with a bespoke service that begins with answering your initial questions with a free – no obligation – consultation, through the whole process including arranging transport of your yacht to your chosen marina. Our expert team scans the market to identify the right product for you, including a wide-range of non-advertised yachts, and can provide advice on finance, surveys and basic seamanship. In particular, we can act as your negotiation agent in the all important procurement and purchase process.

So, don’t set sail until you’ve spoken to Go Earth, and ensure that your yacht investment is watertight, and gives you years of pleasure and luxury!

2016 will go down in history as a year that defied expectations. Summer saw the electorate in the UK send stock markets tumbling with an unexpected vote to leave the EU. On the other side of the Atlantic meanwhile, political outlier Donald Trump ran a campaign which divided the US and, against all the odds, delivered a second major political upset, once again sending shockwaves through the financial markets. The consequences of these decisions remain to be seen, but will be felt for years to come.

And with article 50 set to be triggered in the spring, formally beginning the Brexit process, and presidential elections looming in both France and Germany, there is still plenty of room for further turbulence. On the economic front also, the crisis in the Eurozone rumbles on, with investors now nervously eyeing Italy’s €4 trillion banking system. 2017 then is shaping up to be no less fractious than the last 12 months – as this year’s recipient of the Nobel Prize for Literature once said, ‘the times they are a changing’.

So, against this uncertain backdrop, where can investors turn when looking to make a return?

Uncertainty is traditionally an enemy of investment. While there are gains to be made on stock market fluctuations, these require time and expertise, and bring with them a good deal of risk. Faced with falling markets 2016 saw investors hedge against uncertainty by investing in traditional ‘safe haven’ assets such as gold. However, while the price of gold spiked following Brexit and the US Presidential election, it has since normalised as the dust has settled, and in November reached near record lows against the dollar.

This has led many to ask, what to do when even safe havens aren’t so safe? As long-term, reliable investments, both the stock market and precious metals can often turn out to be fool’s gold.

While geopolitical forces might be impacting global stocks and shares, more everyday concerns are impacting property markets in the UK, and across the developed world. The simple desire to own a home, combined with a chronic shortage of houses for people to buy, is driving up property values and led, in 2015 alone, to UK property appreciation outstripping all other asset classes, with growth in the region of 13-14%1. This is part of a longer term trend that has seen returns on UK property investments growing by an average of 6% annually.

The supply/demand dynamic is also putting upward pressure on rents with one recent poll suggesting up to 40% of landlords may seek to increase rents over coming months2.

These market dynamics, combined with a dwindling number of dividend paying shares available3 to would be investors, make investing in property an increasingly attractive option.

For many looking to invest in property, a buy-to-let investment in the UK’s burgeoning private rented sector has been a popular means of doing so. Over the last 18 months however, the government has done much to dis-incentivise this kind of small scale investment, by increasing the tax burden on landlords, while imposing tougher affordability criteria on the market.

There is an alternative to buy-to-let, however, which is much less of a political football, and this is property development. And, with the UK government having recently outlined plans to engage in a major housebuilding push which includes the construction of 40,000 new homes over the course of the current parliament, complete with supporting infrastructure, now could be the time to invest.

Bastien Jack offer one such opportunity for entry into this dynamic market. A privately owned property developer based in central England, a region dubbed the ‘Midlands Engine’ by the government and the focus of increasing levels of investment and infrastructure spending, Bastien Jack have more than 20 years experience in property development and are responsible for the sale of more than £800 million worth of UK and London properties.

Bastien Jack offer investors a range of investment opportunities. Smaller scale investors can invest from £25,000 via a holding company, with a wide portfolio of developments, thus spreading risk. Investments are rewarded with generous fixed returns which can be received in a number of ways to suit the investor. Larger scale investors looking to invest are encouraged to get in touch with our dedicated team to discuss bespoke terms.

Investors with Bastien Jack also have the opportunity to help alleviate the UK’s housing crisis, while receiving regular updates as to the progress of their development, from breaking soil to topping out.

Rick Nicholls, Managing Director at Bastien Jack, says:

“During this period of economic uncertainty, investments long thought of as being safe such as gold can be unpredictable. Recent and unprecedented events in global politics may accentuate performance peaks and troughs further. It is well known that we have a significant shortage of homes in the UK and, as a country, have been under-delivering on new homes for decades.

“We are encouraged by Teresa May’s first party conference speech as Prime Minister, where she pledged to increase the number of new homes. We understand house price growth is forecast to slow in the mainstream market but we at Bastien Jack offer attractive investor returns for those looking to invest in our business. We have built a business out of procuring and developing housing in carefully selected areas throughout the UK.

“A defined exit strategy is at the forefront of our model, comparing favourably to the competition, offering the purchaser a well-designed, high-quality and energy efficient home with standard features such as energy efficient lighting, integrated appliances and carpets/hard floors included in the price. We have a strong pipeline of developments for 2017, offering the opportunity to invest with an experienced property developer and enjoy a good rate of return.”